Borrowing is a long-term commitment for a household, so careful preparation for applying is important. Nowadays, banks have significantly simplified their borrowing administration, but there are a number of factors to consider, according to Smartpocket Bank , which compiled the most important information needed for borrowing . “Before making any borrowing, it is very important to make a family budget. Among other things, you have to take into account regular expenses, determine how much a family can spend on repayments without overstepping the budget, which means that there will be money left over for sudden expenses, ”said Elisha Prunson, an expert at Smartpocket Bank . It is important that the bank can examine the income of family members together. If there are two earners in the household, then their total income is higher and they are already eligible for benefits.
How much better?
If you have a net payment of more than $ 100 and transfer it to your bank, or take on other banking services – such as launching a savings plan, taking out insurance – you can reduce your overall loan rate by more than 1 percentage point. According to Smartpocket Bank, in mid-December there was a significant difference between the 10 million dollars, the 20-year mortgage loans with a fixed repayment period of at least 3 years. If the conditions are met, the cheapest home loans can be taken at just over 3 percent thm, but if those conditions are not met, they can go above 4 percent thm. And this difference can mean millions of extra expenses over the lifetime of the loan. In other words, if the borrower does not meet the most typical conditions, the difference in the monthly repayment can be 4-5 thousand dollars, and the difference in the total repayment may be 1-1.5 million . In addition, with the monthly savings of 4-5 thousand HUF, you can start a home- saving scheme with state support.
Minimum regular salary can get a mortgage
Elisha Prunson added: “Although banks offer different things, especially in thm, there are expectations that are common to almost all banks.” Typically, only those over 18 years of age with a minimum regular salary can get a mortgage, and they also have to provide real estate as collateral . Owing to the latter, a certificate of ownership is required to prove that the property is free of charges. The amount of the loan that can be taken out is determined by the bank on the basis of a valuation report commissioned by the bank and the contract itself is usually signed before a notary . According to Smartpocket Bank’s expert, it is worth reviewing the entire market offer before borrowing, as banks may reimburse customers for some or all of the costs of borrowing services.